Attempts $$ Keep the Highest $\frac{?}{3}$

$2.$ Constant growth stocks

SCI just paid a dividend $(D_0)$ of $$1\mathrm{.}68$ per share, and its annual dividend is expected to grow at a constant rate $($g$)$ of $3\mathrm{.}50\%$ per year. If the required return $(r_s)$ on SCI's stock is $8\mathrm{.}75\%,$ then the intrinsic value of SCI's shares is $$ per share.

Which of the following statements is true about the constant growth model?

The constant growth model can be used if a stock's expected constant growth rate is less than its required return.

The constant growth model can be used if a stock's expected constant growth rate is more than its required return.

Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.: $($Note: Do not round your intermediate calculations.$)$

If SCI's stock is in equilibrium, the current expected dividend yield on the stock will be $$ per share.

SCI's expected stock price one year from today will be $$ per share.

If SCI's stock is in equilibrium, the current expected capital gains yield on SCI's stock will be $$ per share.

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